Importance Of Saving Money

If we belong to a civilized, moralistic society we should be ideally saving our resources, trees, animals, civilization, environment and many other things but on a personal level to be independent all life then the most important habit you must form is the art of saving.

Why I call it an art because most of the people in the world find it difficult saving anything be it relationships, artifacts, records, or very expensive items. But I am going to talk on the hackneyed phrase that makes a lot of sense on our financial front i.e “The Importance of saving money”

The more money you have saved, the more you control your destiny. The savings are like Fire Extinguisher. They sit there seemingly useless, but when a fire breaks out the extinguisher bails us out of a financial dilemma.

Why We Should Save Money?

Ans: – The uncertainty of life. The importance of money in everyday life.

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Most of us put in 4/5th of our lives working each year to earn most of our money. But when you have money at HOME or parked SOMEPLACE ELSE the Banks offer the best options because your money is insured and no fear of theft or some untoward incident, and secondly banks pay interest on the money you have deposited. How To Save Money. Importance of Saving Money

It’s very wise to get used to putting your savings into your Bank account before you do anything else with your money. Many workplaces allow you to have a portion of your income directly deposited into a savings account.

But if you are a professional, skilled or otherwise, running a small or big business, a sportsman or even an entertainer a little saving in a BANK can help you in a long way besides boosting your confidence. How To Save Money

How To Save Money?

7 Simple Ways To Save Money

1. CHALK UP YOUR EXPENSES

The first baby step to start saving money is to chalk out or record how much you spend that means every tea/coffee, household item or shopping bills.

2. PLAN OR BUDGET YOUR EXPENSES

Your budget must outline how your expenses measure up to your income which gives you enough space to plan your spending and limit overspending. Factor in expenses that occur regularly but not every month like repairs, servicing of AC, etc.

3. FINDING WAYS TO CUT YOUR SPENDING

Trimming your expenses. Cut back or look to spend less on entertainment or dining out or mobile phone.

4. SET GOALS FOR SAVING

One of the most important and best ways to save money is to set a goal on areas that I can save one, perhaps on planning to get married or a vacation. Importance of Saving Money

5. PICK THE RIGHT TOOLS

There are many options available these days. For short term go for the savings account. For the long term, savings go retirement accounts, tax-efficient savings, securities like stocks, mutual funds(subject to market risks)

6. MAKING SAVING AUTOMATIC

All good Banks offer automated transfers between your checking and savings accounts. It generally reduces the temptation to spend the money.

7. WATCH YOUR SAVINGS GROW

Review your budget and check your progress every month. Not only it helps you to your personal savings plan, but it also helps you identify and fix problems quickly. The understanding of the art of saving money may even inspire you to find more ways to save and hit your goals faster.

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The benefits of saving money in life are manifold. Banks are the best option. You get a cushion to certain unwanted contingencies that need immediate attention and finance. The money earns interest and is totally secured.

But unfortunately, not all love to save. So the ability to save money must be inculcated during childhood. Give an ice-cream or a Pizza to a child. Eat 1/4th of the ice-cream or slice off Pizza. Initially, the child will protest but will slowly accept that I have to eat an ice-cream or a Pizza 25% less.

That 25% portion is the LOVE and BONDING he gets with his immediate family. That 25% is his everyday savings. That 25% of savings ensure a better and prosperous future life for him. That teaches him or her the “Importance of saving”. How To Save Money